Ground handling firm Sats defers new air cargo fee a second time to Aug 1 amid continued pushback

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The move comes after a townhall meeting held on April 19 to address industry concerns.

Originally meant to kick in on April 15, the new charge by Sats had been delayed by a month to May 15 after industry players pushed back against the move.

The ground handler also said it has renamed its new fee, which will now be called a “cargo terminal collection fee”, instead of an “import handling fee”, to better reflect the work required for handling, processing and securing inbound cargo. They also said that the higher costs could impact the competitiveness of Changi Airport as an air cargo hub and questioned why airlines – the direct customers of cargo terminal operators like Sats – are not being made to shoulder the burden.

Industry players said that given Sats’ dominant position in the ground handling sector here, they fear that its only other competitor in Singapore – dnata – will follow suit and impose a similar fee in future.One industry insider who was at the April 19 meeting noted the knock-on effects that the additional fee will have on some clients, such as those dealing in perishables. One example is the meat that is flown into Singapore for the annual Hari Raya Haji ritual of korban.

Sats told ST that the primary objective of the new fee is to partially cover its rising operating costs, which have increased significantly post-Covid-19 due to inflationary pressures.

 

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